Jeweller Soo Kee launches IPO on catalist

Soo Kee Group plans to use the expected net proceeds its IPO to open new stores in Singapore and Malaysia, and to fund its capital expenditure investment in its new Changi Business Park headquarters.ST PHOTO: CHEW SENG KIM

The company plans to use the expected net proceeds of approximately S$31.6 million from the IPO to open new stores in Singapore and Malaysia as well as to fund its capital expenditure investment in its new Changi Business Park headquarters, said the group in a statement.

The invitation comprises 112.5 million invitation shares, including nine million public offer shares and 103.5 million placement shares.

Priced at 30 Singapore cents each, the shares are priced at a historical price earnings ratio of approximately 12.5 times, based on its earnings per share of 2.4 cents for the financial year ended Dec 31, 2014, and based on the company's total share capital of 450 million shares.

Soo Kee Group intends to pay dividends of 20 per cent of its net profit for the financial years of 2015 and 2016.

The public offer will open at 9am on Wednesday and will close at 12pm on August 18. Soo Kee Group is expected to be listed on the Catalist board on August 20, 9am.

Headquartered in Singapore, the jeweller is celebrating its 25th anniversary in the business this year. It operates a network of more than 60 retail stores in Singapore and Malaysia.

"We believe that we have become a trusted name in the industry with our high quality jewellery products and mementoes, and a strong focus on continual innovation to appeal to evolving consumer tastes and preferences," group chief executive Lim Yong Sheng said.

Other than opening more stores, the company also intends to introduce more product lines, as well as to optimise the design and layout of its existing retail stores to enhance the shopping experience of customers.

Soo Kee Group's net profit increased from S$6.9 million in FY2012 to S$10.8 million in FY14. Over this period, revenue rose from S$129.9 million to S$134.5 million.

The Straits Times

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